you. >> the hoffman red hawks, this is a group of seventh and eighth grade boys that plays football judge, they are going to nationals, they need your help to raise some money, a great story i hope you look it pup i'll retweet it as well. >> go fund me.com the place to look there. have a terrific rest of the day. "power lunch" starts right now. >> "halftime" is over. the second half of your trading day begins now. >> go red hawks. all right. contradiction and confusion. one set of data say the market should fall and others say it should rise after an early drop. we rose. right now, well you know what the numbers say. what does the fox say? the numbers say down 35. the big question where do we go from here and what will 2014 look like? one of the brightest minds on wall street jpmorgan's private chief bank inment offer richard mattie began will give us his take. he will give it to us today. the president's plan to fix the wealth gap. taxes, higher minimum wage, all

on the table and some remarks he has been giving. stallering facts on the income of lower level bank employees. guess who's paying them? you the taxpayers are to a surprising degree. we'll explain that. to sue in the house today. >> i am, ty. thanks. three key pieces of data out leaving about everybody scratching their heads. first up, the adp jobs report showing a gain of 215,000 private sector jobs. then october's new home sales, booming up 25.4%. but ism nonmanufacturing fell to 53.9 from 55.4 a month ago. here's one of the more worrisome factors for the market right now. take a look at the yield on the ten-year note, 2.84%. that has put some pressure at various times in the trading day on the dow jones industrial average. let's take a look at where it's sitting right now. the dow down about 37 points on the trading session. the s&p 500 is down almost 5 and

the nasdaq composite is down a little better than 5. all three, though, are up more than 20% year to date. let's get to bob pisani at the nyse. bob, what are they talking about down there? they've been focused on the ten year but what else is in the arena? >> they're trying to figure out what they should focus on. it's a simple answer because the market is it telling you focus on the jobs report and jobs outlook and we're getting confusing numbers today and that's why the market is having a tough time. put up the screen. saw what sue was saying. the adp report, 8:15 eastern time. strong jobs number. stocks drop because better chance that the taper would begin earlier. ism report at 10:00, showed a weak jobs outlook. stocks rallied on that. less chance of a taper. put up the dow intraday and how confused things are. the important thing the market did move up on that numbers at 10:00 a.m. eastern time but it's sending confusing signals about jobs and the bottom line i don't think the market is interested in moving very much ahead of the friday jobs number.

want further proof of the confusion, look at the housing numbers, look at the home building index here. the itb, etf for home building stocks, that one moved up as we got good news on the october new home sales, but then drifted lower throughout the day because there was a lot of confusion about the september numbers. earlier revisions downward. bottom line, bottom line right here sue and tyler, focus on the jobs number. the market moves on those headlines and that's what everybody is focused on down here. back to you. >> roberto, thank you. if you think the dip is done and you believe in a santa claus rally, dominic the big dipper chu has a few stock -- has run some screens and got some ideas don't you about where you might make some smart plays? >> very simple screen. we looked at the s&p 500 and said hey, what are the stocks that have done the best over the past five years? on average between black friday and the end of the year? so historically these stocks have done well over the medium term, five years, black friday through the end of the year. check this out because since,

again, over the last five years, genworth financial, delta air lines and micron are among the best performing stocks each holiday season. genworth up 34%, delta air lines up around 19% and micron up 14% per holiday season on average for the last five years. not coincidentally these stocks are among the best performing stock in the s&p 500 in their respective sectors so far just this year. genworth up over 100%, and micron leading the s&p 500 technology sector up 244%. some of these names have had great years already in 2013. now some of the stocks you may want to just step a little bit away from, it may involve the energy names among some of the worst performers over that five-year stretch are some big energy names. check out names like transocean, diamond offshore, noble energy, all down on average over the last five holiday shopping

seasons. sue, some buy lists, some maybe stay away from, interesting names for sure. >> to say the least. thank you very much. now to the health of housing, and a monster number on new home sales in october. diana olick as you well know is on the real estate beat for us. >> hey, sue. it is a monster number but you have to takes this with a grain of salt or 20 percent margin of error. we got two months worth of sales data due to the government shutdown. so take a look if you will. contracts signed to buy newly built homes jumped 25% in october month to month after falling 6.6% in september from august. but you have to follow this closely. look, the annualized rate which is how many homes would sell in a year at the current sales pace, was originally reported in august as 421,000 ufits. that was revised down 15%, the numbers fell to 354,000. that's a 10% drop from the previous year. then the sales until jumps, rose

to 444,000 annualized in october and there's your huge headline. many, many folks expect that number will be revised down as well. probably, though, still will be some gains. because mortgage rates after rising all summer, took a dip in october slightly. but guess what? they're on the rise again. we warned you on-line yesterday to lock and load because more positive data today has rates above 4.5%. refinance applications hit hard, down 60s% from their peak in may and that is a lot of lost bank business. more on-line realty check.cnbc.com. sue? >> thank you so much. as you know 2013 has been a great year for stocks with the dow, the s&p and nasdaq posting gains of 20% or some cases more than 20%. we're looking ahead at 2014. what can we expect? we welcome back richard, chief investment officer at jpmorgan bank. $935 billion under management and still manages to sleep at

night. kenny polcari and bob pisani at the nyse and we'll get their take on this in a minute. richard, with you, good to see you again, the last time we see you before the year's end. >> yes. >> so look ahead to 2014. the big debate on the floor right now is are we overvalued? fairly valued? where do you come down on that? >> it's funny, i break it down to too far or too fast. too fast, definitely. markets are ahead of themselves in multiples. they feel good but very begrudgingly being invested. too far i'm going to push back, no. a lot has been the issue of relative valuations which are fair, fair isn't expensive, we feel okay about that, and still biased toward making money in equities neck year. >> if you're an investor who has a game in this market this year you feel 2014 will be a positive year for equities. >> we do. you may push back on the answer on this. i would love a little less exuberance. we have a constructive view on the outlook over the next two years. irrationally exuberant run next

year. if we do next year what you do next year you will have me back in september it telling you to sell equities. >> we have gone so far. what would you like to see in terms of retracement? are you in the camp that a 10 to 15% retracement would be the pause that refreshes in the market or do you need to see more or less? >> the answer is yes. i don't think we get it. the reality is you got a lot of investors this year kept waiting for a pullback to come in and didn't. we may get the reverse next year. we may come into the first quarter and literally see people who say, the lesson i took away from 2013 was, don't wait fors the pullback, i never got invested, get invested. ironically we're debating where we go to the end of the year. we may get off to a rocket start if washington doesn't get in the way in january. >> how do you invest now given the environment you laid out. >> carefully. >> all the time certainly. but we have the taper looming somewhere out there. >> yes. >> where do you still find attractive valuations around the

world? >> i would break it down if you let me into two part of a description. long-term money is easy, don't overthink it, stay invested. probably the best advice we gave to clients had this year. short term money is getting harder, liquidity isn't there, volatility is low so we've been dialing back a little bit of the tactical call. the biggest discussion point for investors next year assuming you leave equities win and we do, does the rest of the world catch up with the u.s.? the u.s. has led so strongly. international markets haven't. if you look at the case numbers, pe, any forward valuation, europe we've talked about for a year. >> absolutely. >> interesting. japan as well. >> are you still as favorable on both of those countries as you were in the past? >> we are, although i keep saying, it's e with a small excitement not a capital e. europe is about operating leverage and happening and pushing through japan i feel better about because people are doubting it.

we're looking at small and mid cap. >> great seeing you. >> great to see you too. >> ty, over it to you. >> to the two peas in the pod, pisani and pull carry. okay. you first, you heard richard he says equities win next year and doesn't think a 10 to 15% correctionship is likely. do you agree or disagree? >> i agree with that. we've been talking about that for a while, right. i don't think you're going to get the pullback because there is too much money and 2014 has been the year we've been talking about that people looking forward, not only the turnaround in the united states in the terms of the economy but the globe. the only thing that concerns me about the emerging markets is if the feds does start to taper back what is that going to do to those emerging markets and are they at more risk as a result of a fed pullback? >> any kind of rise in interest rate is going to kill in emerging markets. we've seen that so far. here's what i'm optimistic about. maybe an early budget deal,

maybe obama care gets less messy. little optimistic maybe. maybe the economy gets better incrementally. here's the thing the thing is going to turn on. can janet yellen pull off the great deal, convince the world tapering is not tightening? does she have that power and influence? that's the wildcard. >> i don't think -- see i think the market will make that decision, because we've seen that with ben bernanke and the current fed. they've tried to say taper isn't tightening but the market is going to make that interpretation and that's going to be the struggle for the fed next year. >> the honeymoon will be very short, very short honeymoon for her. >> thank you very much. sue? >> ty, president obama speaking today about the wealth gap in the united states. should the wealthy worry? part of the story is how you the american taxpayer is now paying to keep many lower-level banking employees afloat while the executives make much better money and the pope has weighed in on all of this as well. talking about major and possible changes in the way that the american economy work. that's straight ahead on "power

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when the music stopped and the crisis hit millions of families were stripped of whatever cushion they had left.

the result is an economy that's become profoundly unequal. >> president obama speaking earlier this morning about closing the great american wealth gap as he sees it. his speech on news that almost a third of the nation's bank tellers rely on some form of public assistance to get by. kayla tausche is here with more on that angle and robert frank has a reality check on the numbers concerning income inequality. kayla, you to first. this is a surprise. >> it is a surprise and this is from "the washington post," an article citing data from the university of california berkeley that says a third of bank tellers tap government entitlement programs roughly $900 million as they struggle with low wages in a profitable industry. compared to the national poverty line 23,000 for a family of four, the bank tellers in this country make roughly below $26,000. far lower than other jobs at these banks. underrioters and financial

advisors clock in under $100,000. bank executives to the s.e.c. make over $500,000 for their salaries. the biggest banks get an average of $15.1 million. but in an industry where the skillsets range from highly specialized and risky to relatively administrative, you can understand why there is some sort of a pay gap. but when you compare a teller's salary to what the bureau of labor statistics said are comparable clerk jobs they fall behind. half of what postal carriers get. less than customer service representatives. less than typists, ambulance dispatchers. look at some of those jobs and wondering why a bank teller isn't making that much. brancheses going digital, these jobs fewer but more specialized. even if you're not closing the gap in this profitable industry you could argue they -- >> are they part-time employees? >> half and half. >> robert frank with details on the wealth gap.

get us through the numbers and give us a reality check. >> president obama said in his speech that rising inequality is hurting the economy. he said inequality leaves the average family with less, consumer spending slows while the more concentrated wealth is less likely to result in consumer spending. the problem is inequality today is lower than it was when the economy was much stronger. look at the two biggest spikes over the last 20 years, they both came during economic booms. the first was in '99 and 2000 and then the second spike was in 2006 and 2007 just before the crisis. in fact, the top 1% had more in 2007 when unemployment was only 4.5%, than they do today. this is not to say that inequality is no the a problem and it has been growing since 2009, but even conservatives like rupert murdoch are warning about a, quote, class society and decline in opportunity but inequality driven more by rising stock markets and capital gains by the wealthy than the decline of those in the bottom.

it is a byproduct of growth more than a cause of recession. i think too many people are conflating the recession with inequality. >> all right. robert and kayla, thank you very much. stay with us for a moment as we talk a little bit more about the wealth gap and to do that let's bring in eamon javers in washington. on that report that bank tellers comes at a bad time for the banks when they're making tons of money. >> yeah. look, tyler, this is an extraordinarily profitable industry, high paying for those at the top. a couple caveats about this study in the "washington post" today. the "washington post" reports it was released by a labor backed group and just so coincidentally happens to come on a day when a labor backed president is making an inequality speech. it may not shock you to suspect there might be politics involved and the agenda of t the people putting out the survey. nonetheless this is the kind of thing that can get some political bounce largely because we're seeing the president talk about it today. it raises the question of whether this is some kind of a

backdoor taxpayer bailout for the banks and anything to do with bailouts for banks is sensitive. and, of course, it comes just a week after the pope of all people started a worldwide discussion about inequality and profits over people last week with a very provocative publication by the vatican. all that. this is definitely in the mix of the national and global conversation right now. >> it comes also at a time when there is renewed discussion, amman, about raising the minimum wage which the president i assume touched on today in his remarks. >> big debate. protests across the country that we've seen. this is definitely part of a coordinated effort to go out there and raise this question of who is benefiting by this economic recovery that we've seen. people criticize the recovery for not being strong enough, but there clearly are some winning more and some who are winning less as the needle begins to get back to normal on the u.s. economy. the question is who is being left out of all of that and that seems to be the question that these folks are raising right here with the bank tellers. >> interesting also to talk about bank tellers.

i mean this is an industry in change. i mean i can't remember the last time i went to a bank teller. i use the atm or i use my on-line banking. it is a dwindling job, but i was surprised, 500,000 bank tellers in this country? >> 541,000. we have roughly 95,000 brancheses. that is down slightly. you're if not seeing the branches go away. you are seeing them become a little more digital. you have the video kiosks where you can make a deposit and talking to someone on a screen and not live. and you have a lot of those jobs that traditionally were at the drive-through or desk and going away. they are becoming specialized. banks want to put more financial advisors in the branches so when customers are going in there they're getting real advice about whether they should refinance their mortgage or put money in the stock market and those are jobs that should be higher paying. >> we seem to have an economy where the wealth gap, despite your numbers there. >> yeah. >> showing it. >> inequality is on a move. >> since 2009, with help from easy money from the fed, the asset rich have gotten richer an

this is the -- >> the asset rich. >> the global fund. what i liked about obama's speech he pointed out this is a global phenomena and the question is, whether you're talking about new york city and de blasio or obama and the rest of the country. how much do you as a country or a nation want to offset these much bigger global forces and when do you kill the goose that lays the golden egg. that's the question. >> and you know, no country really does income quality terribly well that i know of. >> sweden, norway. >> some of those social democracies have had less of that. they don't have high-end wealth in the same way that we do here. anyh anyhow, it is an issue. >> it's a consequence of growth. >> inequality can lead to social unrest. >> all right. >> take one thing away sfli don't think we're going to solve it today but to the yahoo! poll and see what you think. here is our question of the day. the president speaking about income inequality. what is the solution? 19% of you say raise the minimum wage.

51% say more tax breaks for the middle class. 17% say raise taxes on the rich. >> surprising. >> and 13% say limit executive pay. sue? >> very interesting. all right. it's getting really cold out there. a cold snap gripping the western half of the country. snow falling in minnesota today turning to ice unfortunately in many areas. a messy morning commute for quite a few people. this is denver last night. it was 56 degrees yesterday. today, it's down to 0 in some parts of the state. they're expecting 15 inches of snow. the next shoe to drop, perhaps crop. jane wells is live in los angeles. are they worried out there, jane? >> yeah, they are. it's going to get down into the low 20s tonight in places, sue. california produces 80% of the nation's fresh citrus, a $2 billion industry. the biggest area of california's central valley where they're harvesting navel and mandarin oranges and lemons. quote, 85% of the fruit is still

on the trees. last night as some areas dipped to 27 degrees, grower keith soaked the ground ahead of time which can insulate before it freezes. didn't get cold enough to start running the wind mills but he may do that and light the peach pits on fire. >> i burn peach pits to allow the heat to go up and the wind machine to blow it back down. >> it's not unheard of to have a freeze this time of year. farmers used to it. but navel prices are up 20% at the retail level in a year according to the usda figure. mandarins most at risk to frost because they have thinner skins and less sugar than navel originals and sugar helps protect against frost. who knew. >> i didn't know. thanks very much. well, social media the cloud, that's so 2012. the top tech trends for 2014 from one of silicon valley's top venture capitalists, looking for a unicorn. see what that means coming up on "power lunch." plus, the power pitch.

>> coming up on power pitch, this start-up crosses your smartphone with an electric scooter to make getting around town faster, greener and cooler. would you go along for the ride? stay tuned to find out. the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ she loves a lot of the same things you do.

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swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. all right. let's get you up to date on the markets because we have take an dip once again. the dow down almost 90 points. the nasdaq is down 18, about a half a percent. and the s&p 500 is down

two-thirds of a percent on the trading seg. p bob pisani is on the floor of the nyse. we were holding pretty steady down 37 and then dropped. was there anything that you saw necessarily that triggered that? >> no. i think there's just a lot of confusion on the economic numbers. the housing number were confusing. the jobs number is what everyone needs to focus on and we just got confusing numbers this morning. put up the dow industrials. we saw the future prior to the open drop down as we got a pretty strong adp report that increases the chaps of the fed of beginning its taper early. the move up in the middle of the day. we went positive as we got the number on the ism services and particularly employment component was weaker than expected. that lowers the chances of tapering. it's about tapering and the market rose here. you can see it's sort of slowly moving to the upside and this is because the market is sending confusing signal about jobs. let's move ahead and just show you what's going on with the sectors here. nothing much going on. all if earlier in the day moving

to the negative side. again, you want to watch yields, it ten-year yields which are continuing to move to the upside. see here, sue, this is a three month chart. the trend is to the upside. back to you. >> that's certainly worth pointing out. thank you so much, bob. interest rates have been the focus of equity traders and bond market traders alike to the cme and rick santelli is tracking the action on that. >> i'll tell you, sue, i don't know. bob says if you really want to know what's going on, at lot of roads lead to the fed. what do you think the fed is looking at. i'll tell you, ten-year note yields. that's what they're looking at. intraday chart we're in the mid 280s. september 1st last time at these levels, mid september, that pattern is a rather aggressive pattern. many traders would make an expression like they would be knocked a strong friday number doesn't give you three handle. i don't disagree. look at the dollar index, a little nervous about stocks, knee-jerk reaction was a good

one, but the hot commodity in foreign exchange continues to be the pound. best levels against the dollar since august of 2011p. sue, back to you. >> you have been all over that story, rick, and ahead of it in many cases. thanks. all right. where's in the money going? >> one is into gold. sharon epperson checking the close at the nymex. >> it's kind of strange to say that, money coming out of stocks and into gold because we haven't seen that all year long. but we are seeing some positions sway perhaps here and short covering taking gold prices up more than $25. we topped 1250 in the session. but we are seeing the holdings fall to the lowest levels since 2009 yesterday. a lot of weakness here in the gold. the momentum, though, is across the board in the metals complex and as we keep telling you, wait for friday, that jobs report is what everyone is going to be hanging their hat on. back to you. >> all right. sharon, thank you very much. the power pitch profiles scoot networks this week. founder gets 60 seconds to make

his pitch and a panel of expert gives it a thumb's up or down. here we go. >> i'm mandy drury and on today's power pitch a company that wants to make getting around town easier, greener and way more fun. michael keating is the ceo and founder of scoot networks, a harvard graduate with a masters in business and urban planning, before revving up his first company he worked as p in sustainability consulting. let's take a look at his power pitch. >> i'm michael keating, the founder and ceo of scoot networks. scoot makes electric vehicles available to everyone. we scoot push your phone to activate one of the scooters across the city, zip around town and drop it off. you don't have to bring it back. at 5 bucks for the first hour, scoot is a little more expensive than the bus, but it's a lot more fun.

and it's 600 miles per gallon equivalent also super green. this is the perfect time for scoot. millions of young people are living in cities, spending billions of dollars a year on parking tickets and taxi fares and subways. they all have smartphones and familiar with zip car and city bike and most don't own their own cars. they're looking for a fast and affordable way to get around town. this is a massive market. scoot is the best position. >> okay. michael is on the right side of your screen, can still hear us but can't react yet. on our power pitch panel, venture capitalist jeff lewis of founders fun. and we also have paul lee, a partner with venture capital firm lights bank, the firm has invested in more than 50 start-ups raising over $1.5 billion and creating more than $10 billion in equity value. so guys, great to have you on the show. let's huddle up on scoot

networks. paul, what do you think about this? >> i think it's an interesting opportunity in terms of the integration with the smart phone with transportation. obviously what we hear is doing very well and there is a precedent of building large businesses out of this type of opportunity, but, you know, i have my concerns. >> what about you, jeff? how do you feel about sco scoot networks? >> i think there are a lot of questions about how easy others could copy this model as they look to scale into other cities and really interested in diving into the barriers to entry. >> for me, it's affordable and fund and environmentally friendly. the one thing that makes it accessible not needing to have a license kind of worries me from the insurance perspective. imagine all these tourists who have no experience jumping on, driving off those steep hills in san francisco and let's face it, accidents happen. okay. . guys, michael, you're now in the hot seat. it is time to get grilled. jeff, i'm going to throw the first question to you. what are some of the concerns you have sp. >> michael, as people start to hear about scoot and as you look

to expand into other markets, what's going to prevent others from replicating your model as you look to cities beyond san francisco? >> so we get great network effects within the markets where we're established so we're hard to displace once we get established. the barriers to entry mainly are learning curves, intellectual property on our technology great safety record brand that will give us a big head start and edge in new markets that we enter. >> paul, any questions for michael? >> yeah. i guess it's one thing to launch in san francisco where the weather is generally mild throughout the year, but, you know, in places like new york and places like boston, we have this thing called snow. and so i'm just wondering as you expand into these markets how do you see operating in those markets where weather is an inhibiting factor? >> most cities that have a winter also have a bike share system so we can see precedence for on demand two wheel transportation in these cities. certainly went wear take a bite out of our revenue but our costs are mostly fixed on a monthly basis so we can still make a

decent margin in markets that have a real wenter. >> what kind of costs do you have and what kind of revenue do you bring in. >> our costs fare mainly the operating costs, parking, insurance, maintenance and on the revenue side we're making enough money from the scooters to support all those direct costs and generate a positive gross margin and only a year in. >> are you seeing evidence of new drivers getting on and being comfortable over a long period of time? >> absolutely. 75% of our riders have never been on a power two wheel before. we teach them to ride. they jump on and love it and ride repeatedly. >> okay. . guys, you heard what michael had to say. hopefully some of your concerns have been answered. we need to know whether you are in or out on scooter networks. jeff, you first. >> well, i was skeptical at first but michael did a good job of addressing my questions. i think it's a good market and at the right terms i would be in. >> what about you, paul? >> i love his background, i love the idea on paper, but, you know, given the concerns of

rider concerns in terms of safety and weather, hazards, i just think it's a difficult play and ultimately will be a pretty small market opportunity. i'm out. >> listening to some of the things in terms of how difficult it might be to sort of break into other markets and the weather issues, it's quite cheap but seems like something that would be quite difficult to make a lot of money, get a lot of traction financially on. i would have to say for the moment i'm out, even though i really like the creative idea there. michael, what's your reaction? >> well, i think we'll be able to prove that the opportunity really is huge. transportation in cities hasn't been disrupted since the introduction of the automobile. having a great motorized vehicle to ride and safe what is cities need today. >> okay. best of luck. i really do hope it is a successful venture. thank you very much for joining us, michael keating of scott networks and panelists jeff and paul and that is today's power pitch. >> drones for delivery, scooters to move around. we want to hear from you, are you in or out on scoot networks

logon to power pitch.cnbc.com or follow on twitter #power pitch. what a year for social media, talking about hash tags, twitter going public. what will be the next big tech company to watch for 2014. one of silicon valleys venture capitalists unicorn hunting nowadays we'll explain. >> say hello to the new dodge family, the dodge durango, the dodge dart and the dodge -- >> cut. it's pronounced "dodge". >> i don't want to tell you how to do your job, pal, but i'm pretty sure it's a soft "d." >> let's try dodge. >> all right. >> ron burgundy, the burgundy, drinking burgundy, maybe working, durango sale are on a tear. it's not easy to quantify the impact an ad has on sales but we'll give it a shot and talk about other famous ads and how they have impacted sales. that and more coming up right after this. ...for the year. hi. sorry.

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sell-off on wall street. a few moments ago down about 105 points, now down 98 points on the trading session. off of the lows of the trading session. not by too much but still, a

two-thirds of a percent loss on the dow jones industrial average. ten-year note continues to creep higher and one of the things that is pressuring the equities markets today. all right. over to dominic chu. >> sue, let's watch what's happening with cgi group. to the downside as well, responding to reports that short seller jim chainos has a long short position if the company. stock down about 4% on that news. here is the statement from cgi. cgi is proud of its track record of delivering profitable growth and as a result returning to shareholders on average 30% in each of the last 15 years as a company focused on long-term value creation, our performance based business model is fully aligned with the interests of our shareholders. cgi the main contractor behind the glitch plate healthcare.gov website is up about 50% so far this year to date. back over to you. >> thanks, dom. our next guest one of silicon valleys top venture capitalists scott, general partner at nea, the largest firm

with $13 billion in committed capital and investors in 450 companies that have been sold or taken public, they include eight ipos this year, those so-called rare and coveted unicorn startups, each with billion dollar exits, scott joins us on "power lunch." welcome. a pleasure to have you here. >> thank you very much. great to be with you. >> you have invested in a number of companies that have been extremely successful. but we've seen a run up in the market right now and a lot of it is fueled by some of the tech companies. when you look at the landscape in silicon valley does it feel a little frothy to you, like 1999 all over again or no? >> sue, there are markets of froth here and there -- pockets of froth here and there in the private markets we invest in. some of the valuations that our companies have achieved in the public markets can be deemed frothy or certainly highly valued. i think that reflects the tremendous growth prospects of the ones which would have those

characteristics. but i think on balance silicon valley piz in a good spot. we look at the fundamentals which are the positive cycles of innovation that we see and we see multiple cycles and multiple sectors we invest in on the one hand. sort of the supply side. and then we also look at how much capital is available to fund those companies and for the first time since the tech bubble burst in 2000, we think those things are really in line with each other. the late '90s brought in too much capital and wasn't enough innovation in the early part of the 2000s, but the capital has flooded out and the innovation has grown and we think those things are nicely in balance. >> if the stars are aligned is that why we're seeing this new class a new term to me of unicorn investments? tell me about that? >> a few weeks ago, eileen lee wrote a blog in which she coined this term unicorns which i think everyone has started to talk about. these are the companies which have created more than a billion dollars in enter price value.

i think there were 35 or 40 she listed having gone public since 2004. these are companies that everyone would know like facebook and work day and some other ones that, you know, might not be as well known such as tablo. >> right. >> so when you look at investing money right now and you have an awful lot of money you can put into private companies where are you seeing innovation and enterprise that is worthy of your cash? what areas look good? >> well, on the -- we invest on the medical side and also information technology and for the first time in a while, we've started to see the fruition of our investments in biotech. four ipos this year and we see that sector having some long-term fundamentals that are very attractive and information technology fundamentally this thing everyone is calling the cloud which is really the idea of moving all of your computing power on to -- into a data center somewhere connected to the internet such that it's accessible from any device anywhere at any time, that new

architecture fundamentally breaks almost all the existing technologies which enterprises and consumer companies have adopted over the last 15 years to deliver their services to consumers. so really, everything is up for grabs. we see exciting things, for example, in information security which -- >> i bet. >> which wasn't an area of interest for the last ten years but the threats are clear and the existing infrastructure is changed so much that you need new solutions to address the problems. >> well, scott, we wish you the best of luck. come back and spend time with us again. >> thanks so much, sue. >> scott sandal with the venture firm nea. all right. ty, over to you. >> what a year 2013 has turned out to be for the markets. we give you the investing edge, the stocks insiders are buying and selling right now and we're going to do it right after this break. diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues...

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reuters reports the national highway traffic administration has requested tests to provide records on consumer complaints, property damage claims and design modifications and engineering modedrawings on the model s. this is a routine action in such safety probe but the stock is lower nonetheless. off to see what's happening on "street signs," brian sullivan. >> all right. thanks, dom. wondering what's happening with the market. all this good economic data and stocks are falling. we're going to dig into why. if you think that stocks are overdone and looking to make a return, we're going to talk about a truly liquid investment. how to potentially double your money buying whiskey. i know you would be into that one as well. >> oh, yeah. >> more of the isrg recall and a guy who's going to tell me to eat crow on a retailer i may have been wrong on. i'll wash down the crow with whiskey. >> whiskey and crow. >> what a show. >> i used to drink a whiskey called old crow. it was terble. >> you're a too successful guy.

>> that was back in our virginia days. >> oh, yeah. >> this whiskey will have nothing with old crow. >> mad dog 2020. i'm out. >> all right. guys. there's a cinnamon whiskey i found in a certain resident ofback in my house but that's a different story. markets gain insider buying and selling. show da dharmarajan -- i got the easy name, blew the easy name. >> hey there. $7.4 billion, that's how much stock was sold by insiders when it came to the month of november and it is common to see insiders selling pick-up as markets go higher. keep in mind this is an 85% increase in selling since october and highsest level of insider selling since may. definitely worth taking a note of which companies have the biggest insider sellers. amongst the top ten names we're seeing big insider selling over the past three months best buy, more than $200 million worth of

shares were sold by insiders. then comes amazon. more than $400 million shares sold by insiders including ceo jeff bezos selling a chunk. rounding out is google and microsoft, a billion dollars worth of shares sold by insiders at both of those companies over the past three months. at google you had some of the top dogs doing selling, like chairman eric schmidt and larry page and sara written. there was about a half a billion dollars of buying in november. mike ullman contributed to that, bought about $1 million bucks worth of shares at cjc penney. lou frankfort. one of the biggest we saw from richard kindermorgan, he added $8 million worth to his covers in september. the biggest insider buying over the past three months with was da vitae health care.

he added to his stake to a tune, about the 11th time that he has added to his stake in davitae over the past year. definitely buying happening there. >> thank you so much. outrageous ad campaign that's paying off big time. >> i'm local tv standard bearer ron burgundy. and the rear seats in the dodge durango fold down perfectly flat. and you know what that's for. fk i'm talking about sex. >> ron burgundy helping chrysler to fire up sales of the dodge durango and other things. how this risky idea ever made it when we come back. (announcer) scottrade knows our clients trade

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welcome back to "power lunch." i'm julia boorstin in los angeles. anchorman 2 doesn't hit theaters until december 18th but will ferrell's ron burgundy character is a blockbuster hit for chrysler's durango. his spot for the cars have been viewed 15.3 million times on-line. now this all came about after chrysler's chief marketing officer owe live yeah francis was walking through paramount studio and saw a poer for

anchorman and remembered dodge brand ceo tim cueniskiss is a huge fan. thought an entertaining character from the '70s would be the best way to highlight the technology, efficiency and horsepower of a new car. they got ferrell and paramount's director on board. working with commercial production team ferrell co-founded funny oredy, they shot 70 spots over the course of two days 40 of which have run on air and on-line. chrysler paid to produce the ads and buying the air time but paramount said no money changed hands and the partnership is turning out to be a win win. chrysler says we've seen a nearly 80% increase in web traffic alone since the campaign launched in october and durango sales continue to increase from month to month and year to year. they're one factor contributing to dodge's sales growth up 36% in november from a year ago.

paramount is benefitting from the deal, its marketing partnerships leann stables says audience awareness of the film is off the charts. now we'll have to see how much it boosts anchorman 2 ticket sales in a couple weeks. >> did i hear you right, julia? they did not -- ron burgundy -- will ferrell didn't collect money for doing this? >> well, they say that they paid for the production costs, so they might have paid for his time for two days. because this is going to be so promotional for the movie, what often happens here is that will ferrell could being getting some back end, he could be getting extra bonuses if the movie does really well. it's in everyone's best interest at paramount to get as much free promotion as possible. every time one of these ads runs, paramount's not buying it and it is an ad for anchor 2 as well. >> more awareness this movie is coming out, weekend after next, as i recall, than i can remember basically any comedy over the past decade. >> it's hysterical and we had

will ferrell on "power lunch" for the first one, come on back, will. we'd love to have you on. >> we would love to have you anchor "power lunch" with us. i'll leave and you can play with sue all day. >> three's company. >> i'll make sure he gets the request. >> julia, thanks very much. do a market check here. >> we're going to do a market check because the ten year has bumped up once again and that's what's driving equities down. ten-year note 2.84%. keep in mind a lot of people feel as though if we get a strong employment report on friday even though it will be a season al one with retail hiring we may see a three handle on the ten-year note. a lot of people positioning themselves in equities ahead of that report. >> ahead of that. >> on frye. >> and probably ahead of the beige book. going to leave a little early today. >> that's right. >> the beige book the most aptly name in american literature. you see it down 95 heading into the beige book. that does it for "power lunch." >> all right. breaking news on the economy when the beige book is released

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weird day for stocks. on one hand new home sales rise to the most in 30 years and jobs report ta is way better than expected and budget deal in d.c., all good news. on the other hand, stocks are heading for their fourth straight loss. blame the fed, maybe. more on that in minutes. let's get breaking news from the fed and how america's regional economies are doing with the beige book and st. louis. be -- and steve liesman. >> the beige book is a 2% beige book, 2% growth, the economies the beige book says continues to expand at a moderate to modest pace. the manufacturers did activity continuing to expand in most districts and the gains were seen in autos and high tech. manufacturers that were optimistic about their growth prospect. consumer spending increased in almost all districts at that 2% pace. retailers were hopeful but cautious about the holiday shopping season and sales of autos were moderate to strong. residential real estate